If you are at the point of requiring a survey, then
congratulations are in order ; you’ve just had an offer accepted on your
purchase of a property – a very exciting time.
So what exactly is a survey, and what is the difference
between the various kinds of surveys available?
The first point is that if you are purchasing this property
with the help of a mortgage then the building society will be carrying out a
valuation which is for their purpose, their requirements and their
benefit, but is normally paid for by
you, the purchaser.
A basic building society valuation will simply tell the
lender whether or not the house is worth the money that you have been asked to
pay for it.
Given the huge range of problems that can affect the
property, research showed that 80% of all homeowners still rely just on the
valuation report rather than paying for a more detailed survey.
There are three main types of survey:
The mortgage
valuation report – this is the one that the building society or bank
lending you the money will insist upon before approving your loan. The report will take into account such
factors as the condition and age of the house, the area, and what comparable properties
are selling for locally; but that is all.
If you are buying a property which is less than ten years
old, the chances are it will still be covered by a reputable builders’ warranty
such as an NHBC guarantee. Should this
be the case, then the basic mortgage valuation report may be sufficient.
The going price for the cost of this valuation report
normally is about £450, although it can get more expensive for higher priced
properties and does vary from one lender to the next.
Sometimes, the lender will refund this cost when the
mortgage is finalised or even offer a free mortgage valuation as part of the
package to attract your custom.
If you would like advice on the different mortgage schemes
available then Jonathan Waters Estate Agents canput you in contact with the Ipswich Mortgage Centre who will go through
all the options available.
The RICS Homebuyer
Report – Previously, this was known simply as just The Homebuyers Report
(it’s full official title was The Homebuyers Survey and Valuation Report). Now, known simply as the Homebuyer Report
(HBR), it follows a standard format and
gives you an overview of the condition of the property, rating the structural
condition of the building, and pointing out any major or minor defects and
conditions. It will also tell you
whether the purchase price is reasonable and the surveyor’s opinion of
reinstatement costs which you will need for insurance purposes.
It is important, however, to be aware of the fact that even
with an HBR the property is only inspected on a fairly superficial level. For example, items such as wiring, drainage
and gas are not covered.
If you are buying a typical house or flat, or traditional
standard and conventional construction which is in reasonable condition and has
been well looked after by the vendors, an HBR may well suffice. It is designed to help you make a reasoned
and informed decision on whether or not to go ahead with buying the property
and could cost £750 or more depending on property size and price.
Building Survey –
this used to be known as a Full Structural Survey and is now commonly known as
a Building Survey.
This is mainly required for older houses; the older the
house, the more need for this to be the survey that you have. Certainly, any houses beyond 100 years’ old
this would, in most people’s opinion, be the recommended survey to have.
In addition to my wealth of experience as owner and managing
director of Jonathan Waters Estate Agents, Ipswich, I have had full Structural
Surveys/Building Surveys carried out on properties that I have purchased in the
past. The surveyor provides a
comprehensive and sizeable document and will report on the construction, the
state of the walls, foundations, roof, plumbing, wiring, heating and woodwork.
You may under a Building Survey also specify other factors
for inspection. On one property I was buying
I was concerned with drainage and ended
up having a full drainage video carried out.
(I still have that old VHS tape and it lasts over 30 minutes, but it’s
not very exciting!)
The cost of this survey will depend very much on the age,
size and condition of the property but be prepared to pay from £1,000 upwards.
As the whole building needs to be inspected, a Building
Survey is usually best carried out on houses rather than flats.
One solution I would personally recommend, and which I will
do next time I buy a house, is to have the basic Mortgage Valuation carried out
by your lender and then an independent Homebuyers or Building Survey conducted
by a registered surveyor who is a member of the Royal Institute of Chartered
Surveyors (RICS).
Sometimes the lender will let you use the same surveyor for
both, which can result in some fee savings, but you will need to discuss this
with your lender as they all have different policies on this.
At Jonathan Waters Estate AgentsIpswich we can recommend a local surveyor for both the RICS Homebuyers
Report and a Building Survey.
He has over 45 years’ experience of surveying houses in the
Ipswich area and is both incredibly knowledgeable and extremely
approachable. Please contact Jonathan
Waters Estate Agents if you would like us to put you in contact with him or you
need any more advice on surveys and surveyors.
Remember, if you are purchasing your property with cash
funds and do not require any form of mortgage, there isn’t actually any rule
that says you have to have a survey.
The last property I sold the buyer was cash and chose not to
have one. However, it is the old adage
in this situation of buyer beware!
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